As stated in our whitepaper, we need to define the voting weight for the different governance primitives we have available: Tokens ($TDF), Proof of Presence (PoP), Proof of Sweat (PoS).
As of February 2023, we have mainly insisted on our Proof of Presence as the main governance mechanic. However, it has been a topic to give voting weight to different forms of Capital that are put into the project and valuing them as contributions as well, also increasing the trust of all stakeholders in the project.
Sam’s thoughts: We want to create a dynamic where the people putting in financial capital feel confident in the project, and also feel like they have a say in allocating that capital towards their benefit. Given the cumulative nature of Proof of Presence, over time it would become the majority factor in terms of decision making. This also seems fair since putting in the initial capital may not be so relevant for deciding on the projects evolution after 10 or 100 years, and frees us from the current perspective of capitalistic economies which holds an ever growing grip over its debtors. In a sense, this is a progressive exit of governing rights to the commons (even though capitals are locked in the commons from day one). Future capital injections would be negotiated with their own governance constraints.
| Time period | Scenario | Proof of Presence only | Tokens (x1), Sweat (x5), Presence (x5) | Tokens only |
|---|---|---|---|---|
| Post token launch: |
5700 $TDF 800 PoS 0 PoP | A whale acquires 4000 $TDF tokens. The DAO doesn’t know who the whale is, and the whale consistently vote on shutting down community initiatives in favor of projects that increase the revenues of the DAO. | The whale has 0 influence, not being able to use Tokens to vote (he’s upset). | The whale has the same voting weight as all DAO contributors. Though the DAO must make some concessions to the whale, overall projects continues. | The whale hijacks the pot and forces the DAO to execute actions outside of its initial values | | Year 1
12500 $TDF 1600 PoS 4700 PoP | The community is mixed with 50% of Members having few tokens, and 50% of crypto folks who have little Presence. | The crypto folks are disgruntled at not having a say in the DAO and throw a revolution in Zug. | The Members on the ground + Contributors have about 3x the voting power of Token holders. Token holders generally concede to the plans of the Contributors, but occasionally contest certain decisions. | Members who have been staying in the project and contributing feel like they aren’t being recognized and leave the project - which end up sitting empty most of the time. | | Year 7
18600 $TDF 3720 PoS 32000 PoP | 20 people have been staying at community long term while holding less than 5% of Tokens and want. | | Members on the ground hold over 90% of decision power. | The project at this point has received more value from Members on the ground, though they do not hold governance right and feel excluded. | | Year 100
42000 $TDF 8000 PoS 102400 PoP | | | Members on the ground hold over 90% of decision power. | |